U.S. chip industry is failing to meet goals to boost market share in Japan

Article Abstract:

US microprocessor companies are failing to increase their market shares in Japan despite trade agreements with Japan intended to spur US sales. The Japanese Ministry of International Trade and Industry (MITI), says US sales are improving. MITI says the US is using an inaccurate way to measure. US chip makers, meanwhile, are concerned. Statistics indicate that for 3rd qtr 1991, US share of the Japanese market dropped to 12.3 percent, from 12.85 percent in the 2nd qtr. It means that there is only a slight improvement from the US market position at the beginning of 1990. No causes have been pinpointed, but some speculate that although Japanese firms have agreed to incorporate US chips into their products, most of those products have not marketed well, and thus the low US showing. Others speculate that the low US share stems from a softening international chip market.

Economic policy, Market share, Japan. Ministry of International Trade and Industry, Industry Analysis, Market Analysis, Third Quarter

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U.S., Japan close to chip trade pact setting targets, not quotas, for sales

Article Abstract:

The US and Japan are close to reaching a semiconductor trade agreement that is aimed at creating more foreign sales in the Japanese semiconductor industry. Observers note that the agreement does not include quotas but rather uses targets at which the Japanese will aim; the new agreement is expected to replace a complicated 1986 agreement that was interpreted by Americans as guaranteeing a 20 percent market share for foreign manufacturers in the Japanese semiconductor market. Japan asks the US to lift $200 million of sanctions that were levied as a result of Japan's hesitancy at opening up their market. The US estimates that the foreign market share in the Japanese semiconductor market was 13 percent at the end of 1990, while Japanese officials estimate that figure to be around 19 percent.

Negotiation, mediation and arbitration, International competition (Economics), Activism, Political protest, Japanese Competition, Political Issue

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